Over the past few years, video advertising has exploded in popularity. From the second someone watches a video on their phone or computer to the moment they watch an ad on TV, video can capture attention and drive a response. Video advertising is viewed as more effective and efficient than traditional forms of advertising, like print and radio, because it delivers a message to the viewer in a convenient, time-sensitive, and engaging format.
Digital video advertising is one of the
fastest-growing parts of the digital advertising industry. Video is now the
most popular format for online viewing, and companies have been investing in
digital video advertising to reach as many viewers as possible.
In today's digital world, video ads are everywhere.
When you watch an ad on a video platform, you're watching a video ad. Over the
past few years, digital video advertising has become a common sight in our
day-to-day lives. We watch commercials on our TVs, phones, and even our
computers. But what exactly is digital
video advertising?
What is Digital Video Advertising?
It is the advertising delivered on video platforms
like YouTube, Facebook, Instagram and TikTok. It's the same kind of advertising
you're used to seeing on TV but delivered in a digital format. Digital video
advertising is displayed on video platforms, viewed through a computer, tablet,
phone, or TV. It's delivered through various channels, including video ads
shown on the websites of video platforms, video ads shown on the video
platforms themselves, and video ads shown on third-party platforms like
publishers, CMSes, ad networks, and ad tech companies.
It is a form of digital advertising that consists of
advertising units that are either video formats or video clips. Video formats
are pre-roll, mid-roll and post-roll ads on videos on websites, apps, and other
video platforms.
Here are some ways how digital advertising is going to dominate the future of advertising:-
Engagement rates are higher with video advertisements
Consumer research has shown that video advertising
results in higher long-term engagement rates than non-video advertising. This
is because it is more engaging than traditional advertising formats and more
likely to capture viewers' attention.
According to Tubular Labs, the first two months of
2020 have seen an average of 60% higher clicks and 16% higher conversions for digital video ads than non-video ads.
Higher click-through rates
In terms of click-through rates, digital video
advertising has a higher CTA (conversion) rate than non-video advertising. A
study by TubeMogul found that video ads with a CTA had an average conversion
rate of 16%. In contrast, non-video ads only had an average conversion rate of
12% when measured over one week. This higher CTA shows that video ads are more
likely to result in a conversion, which is a positive for advertisers.
According to Google, the average CTR on digital
video ads is 1.8%, higher than the average CTR of 1.3% for digital video ads on
non-video platforms. When an ad is shown on a video platform, it has a higher
chance of being clicked on than the same ad shown on a non-video platform. This
higher click-through rate also results in higher conversion rates, which can be
measured in sales, leads, and visits.
Increase in sale
Digital advertising is also expanding the market for
online sales. As digital advertising increases, so too does the market for
online sales. This is shown in the increased number of online sales being made
on digital platforms, such as sales on e-commerce platforms and mobile apps.
The increased CTA rates on digital video platforms have led to an increase in
the number of conversions on these platforms, which has, in turn, led to an
increase in the number of sales.
A study by TubeMogul found that the average CPA
(cost per acquisition) for digital video ads on Facebook was $4.76, higher than
the CPA of $4.21 for non-video ads. This shows that when digital video
advertising is used, it results in higher sales. This higher sale can be
measured in new sales, re-engagement of existing customers, and new customer
acquisition.
Also, a study by the Association of National
Advertisers found that the first two months of 2020 have seen an increase in
the number of sales for digital video advertisers, with a CAGR (compound annual
growth rate) of 16%. This is compared to the CAGR of 5% for non-video
advertisers.
Digital Advertisement dominates the online content
Digital Advertisement is vastly dominant online. It
accounts for nearly all online advertising today. If one were to look today,
there are almost 20,000,000 digital ad impressions being made daily across the
globe. This is an increase of nearly 200% since 2017 and growing even faster by
the day.
The rise of digital advertising and marketing means
that there's just more data to draw from and make more informed decisions. As
more consumers interact with advertising, marketers will be able to use new
data to create more personalized ads at a scale that can be delivered most
efficiently, with the right message at the right time.
Advertising is still the primary force in the online
world. In fact, digital advertising comprised 92% of all U.S. ad spending in
2019, and that dominance is expected to grow even more with time.
Conclusion
Digital advertising has existed for a long time
now. It's been incorporated into TV and
film advertising, brand advertising, and general marketing strategy. However, digital transformation is
happening at an amazing rate, and marketers must try to adapt as quickly as
possible. It will continue to play a significant role in the advertising
industry for the foreseeable future.
In a nutshell, digital advertising uses digital tools to serve ads to people on the Internet to generate revenue. It includes digital banner ads (often found in most websites' right-hand column), text links, display ads, videos, and emails. It also includes social media advertising and mobile advertising, also known as digital advertising.
